The U.S. electric vehicle charging stations market is evaluated at US$1,121.613 million for the year 2020, growing at a CAGR of 12.01% to reach the market size of US$2,480.543 million by the year 2027.
A charging station for electric vehicles (EVs) is a device that links an EV to a power source, allowing electric cars, neighbourhood EVS, and plug-in hybrids to be charged. While some charging stations include advanced capabilities such as smart metering, cellular connectivity, and network connectivity, others are more basic. The electric vehicle business is quickly expanding around the world, particularly in the United States.
The market for electric car charging is a fast-paced business with a wide range of applications. The growth of automobile charging stations is aided by government programs in several nations throughout the world. In the United States, for example, the government plays an important role by establishing obligatory regulations and funding for the development of electric vehicle charging stations. These reasons have resulted in a surge in electric vehicle sales and manufacturing around the world. To ensure that the rising fleet of electric automobiles runs properly, charging stations and established power infrastructure are required. As a result, these factors are linked to the market's expansion over the forecasted period. Furthermore, tight government car emission rules have encouraged consumers to switch to electric vehicles, which will help the electric charging station industry grow in the coming years. Moreover, the market expansion would be aided by advances in communications technology such as real-time information on all-electric automobile charging stations for smart connectivity.
However, in certain regions of the USA, commercial charging stations are still few, forcing consumers to rely on charging options available at their offices and residences. Furthermore, the growing number of electric cars may have an impact on charging station functionality, such as the quantity of power generated, the transformer load level, and the load curve.
Because of the rising use of electric vehicles, the AC Level 1 and Level 2 sectors are likely to dominate the electric vehicle charging station market. Charging with alternating current (AC) is often referred to as level 1 or level 2 charging. An in-car inverter converts alternating current (AC) to direct current (DC), which subsequently charges the battery at either level. The majority of electric car drivers in the United States charge their vehicles at home or work using AC power. As more EVs enter the market, this is projected to stimulate demand for AC charging, which will be aided by government restrictions.
The HEV category dominates the market by type, accounting for a sizable revenue share. The HEV gives a dual fuel-based and electric driving option, which is especially useful in areas with limited charging infrastructure. The demand for electric battery vehicles is increasing as private companies and governments seek to build a global network of charging infrastructure to encourage the use of renewable energy. Furthermore, the PHEV market is growing steadily. The demand for these vehicles is expected to increase in future years as their prices fall.
This market is divided into commercial and residential segments depending on the application. The residential usage segment dominates the electric car charging stations market and is expected to continue to do so over the forecast period. This is due to the growing popularity of EVS, as well as the expanding number of charging stations. Furthermore, the commercial market is anticipated to see significant expansion, aided by increased government financing for the development of public charging stations, in coming years.
Over the projected period, the United States is expected to develop significantly in this market. The market in the North American region is predicted to grow because of increased government regulations for car emissions, a rapid acceptance rate of new technologies, and a significant investment in product innovation. As per the International Council on Clean Transportation, with around 320,000 new EV sales in 2019, and according to the International Energy Agency (IEA), about 1.8 million electric vehicles (EVs) were registered in the United States as of 2020, which is more than three times the number registered in 2016.
COVID-19 had a positive impact on the electric vehicle charging station market in the USA. According to the National Renewable Energy Laboratory’s First Quarter Report 2020, due to its smaller scale and considerable expenditures from state and local governments and utilities, the EV charging business has not been as hard hit as other parts of the energy sector, such as the oil industry. Early 2020 saw a continued significant growth of EV charging stations. As the popularity of electric cars (EVs) has grown in recent years, so has the infrastructure to charge them along interstate highways, at businesses, and in public parking lots across the country. State regulators, for example, continue to approve new utility electrification projects, such as infrastructure development plans and consumer incentive programs for chargers and PEVs, despite a large fall in automobile travel and a decrease in demand for charging. Idaho Power, for example, offered incentives to commercial clients who installed charging stations for employee, fleet, or public usage between January 1, 2020, and November 15, 2020.
According to data from the Department of Energy's Alternative Fuel Data Center, the United States reached the 100,000 public charger milestone in March 2021, and these new charging stations will speed up adoption to enable the operating of an electric vehicles in every region of the country.
In February 2022, the US Departments of Transportation and Energy announced roughly USD 5 billion in funding to invest under President Biden's Bipartisan Infrastructure Law's new National Electric Vehicle Infrastructure (NEVI) Program. The program will grant approximately USD 5 billion over five years to states to assist them in developing a network of electric vehicle charging stations along designated alternative fuel corridors, particularly those that run parallel to the Interstate Highway System.
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